Electric vehicle manufacturers Tesla Inc. (NASDAQ:TSLA) and Rivian Automotive Inc (NASDAQ:RIVN) are charting different trajectories within Gary Black‘s Future Fund Active ETF (NYSE:FFND), highlighting the evolving dynamics of the EV market.
What Happened: The fund currently holds 954 shares of Tesla, valued at $275,257 and representing 4.20% of the portfolio, alongside a smaller 1.22% position in Rivian worth $79,738 through 8,212 shares.
Tesla has demonstrated strong performance, with its stock rising 2.90% to $296.91 on Thursday, marking a 33.63% gain over the past year. The company’s shares have surged 19.52% year-to-date, maintaining its position as the EV market leader.
In contrast, Rivian faces more challenging conditions. Despite rising 3.35% to $10.04 on the same day, the company’s stock has declined 52.44% year-to-date and 42.39% over the past year, according to data from Benzinga Pro.
However, Future Fund Managing Partner Black highlighted Rivian’s resilience, noting investor optimism following the company’s maintained positive fourth-quarter gross margin forecast despite supply challenges.
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Why It Matters: Rivian reaffirmed its 2024 production target of 47,000-49,000 vehicles, though it expects full-year EBITDA losses between $2.83 billion and $2.88 billion.
The company’s Chief Software Officer, Wassym Bensaid, emphasized Rivian’s distinct strategy of focusing on incremental safety and convenience improvements rather than pursuing full self-driving technology or robotaxis like its competitor Tesla.
CEO RJ Scaringe remains optimistic about Rivian’s growth prospects, particularly emphasizing the R2 platform’s potential as a key driver of future expansion, despite missing recent revenue and EPS estimates.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
